Room Mate Hospitality & Leisure, the lifestyle hotel brand and lease management company, has acquired Staying Valencia’s collection of 10 boutique hotels and aparthotels in Spain’s Valencia.
The purchase price and other terms of the deal were not disclosed.
The acquisition strengthens Room Mate’s presence across Spain as well as in Valencia. The company will be integrating all 10 of Staying Valencia’s properties, which includes the Helen Berger Hotel & Bar, and rebranding them into its own family of lifestyle hotels.
The addition of Staying Valencia’s hotels brings Room Mate’s total portfolio to 32 hotels located across Spain, Italy, the Netherlands, the U.K. and Turkey.
“Welcoming Staying Valencia into the Room Mate family marks a significant milestone in our journey. We are thrilled to add Staying Valencia to our portfolio of centrally located lifestyle hotels,” said Kike Sarasola, founder and president of Room Mate Hotels. “Valencia’s cultural richness and the company’s hospitality philosophy perfectly aligns with Room Mate’s values.”
Clifford Chance, Perez Llorca, JLL, PwC and Arcadis served as advisors to Room Mate Hotels, while JJL, led by Javier de Miguel, served as financial and legal advisor to Staying Valencia.
The transaction follows Room Mate’s acquisition of The Lime Tree Hotel in Belgravia, London in November 2023 as well as the recent opening of Palazzo Dei Fiori by Room Mate in Venice. The company is also set to launch the ‘Room Mate Collection’ brand, which seeks to offer an elevated luxury experience.
The acquisition marks a milestone in Room Mate’s expansion strategy, which is supported by TPG Angelo Gordon, a credit and real estate investing platform within TPG, and Westmont Hospitality. The two companies acquired Room Mate in July 2022, following the Madrid-based hotel brand’s financial restructuring.
Founded in 2005, Room Mate filed for insolvency in June 2022. Angelo Gordon and Westmont had already invested in the Spanish company in April 2022 to provide it with working capital and later announced that it had acquired the company.
Since the acquisition, Room Mate has improved its financial position and transformed its portfolio through a series of capital expenditures into several hotels. In a statement, the company said it is “well-positioned” to continue its international expansion through more acquisitions, new leases and hotel management agreements.
Room Mate now operates from a position of financial strength, with no debt and a target EBITDA of €40 million ($43.33 million) in 2025 for the combined entity, said Jacopo Burgio, managing director, Europe Real Estate at TPG Angelo Gordon. “We are pleased to have helped Room Mate reestablish itself as one of the premier international hotel chains and look forward to continuing to support the company as it seeks to take advantage of exciting opportunities in the European hospitality sector and beyond.”